All Forum Posts by: Lynn Burson

Thanks Jay.

With my limited experience, couple weeks of due diligence,.. you are spot on.  To get the good price for the hangar we are going to buy the older jet.  Its a package deal.  I was suprised that you can depreciate a jet over 6 years, but we are prob going to sell quick due to the hours flown, maint schedule...capital loss on paper.

My partner has a little experince in this area but... I will say the airports are limited in contiguous land and thus expansion aint easy.

Does anyone have experience with owning & renting an airplane hangar at a small local airport? Thanks.

The same scenario happened to my BIL with a SFR in Phoenix approx 3 years ago. It turned out very bad. The HOA, local/ state laws, insurance,... were not in line with this daycare business.

A RED FLAG was if she was not honest upfront it carried thru the whole process. She left owing $$$, excessive damage & severeal changes to the house...this was to accommodate her cottage business.

IMO for most people a 401 K is a adequate choice.  That is for most people.  The obvious reasons have been stated.  However, sub par investment designs, high administration costs and minimal investment options tend to reduce my favor with 401 K platforms.  

Another issue is being a highly compensated employee. Reduced contributions detracts from using a 401 K to its full advantage. Tools such as a Roth, Traditional IRA... also go out the window.

With 5 houses in the Destin / Miramar Beach area the price range is 5K to 7K. We use Citizens and shop every year via our independent broker. The are VR's thus part of cost of business.

None are in flood but they are at least 2 blocks or closer to the beach...

My business partner does both the developing, building & PM of our properties. It is a different model than most. I will try to find a VR contract which changes pending the property.

The Homeaway Forum Community use to have sample VR contracts. A basic outline which may need to be changed due to the state, county,...

Good question that seems to be both regional & not standard.

In Destin / 30A, I found VRs at a low of 18% to maybe high 30s. Several years ago came across low 40s with one PM having the bulk (approx 60%) in a large Sandestin Condo complex. This was approx 20 years ago and obviously has changed. I observed the same high rates at Winterpark Colorado some time ago.

In the Florida Panhandle they can be nego with 1 to 2 year teaser rates. With all of the little boutique agencies opening up deals can be made.

In 7th grade read something like this: " Two kinds of people, those that react to others (external stimuli) & those that choose their own reaction."

I guess who decides ultimately how you feel about yourself and thus reactions you project. Who is controlling you... or do you just react to what other people say or do?

In my 5 years of involvement with VRs (Owner, Partner, Notes...) the deciding factor for price seems to be location & thus comps.  I have seen condos / houses go in and out of VRs to second homes.  Some owners will change them back to a primary residence or a LTR depending on whatever... A primary residence in a tourist destination can be quite interesting.  

I think profitability with VRs is either you are good at marketing (Matt Landau blog...) or location which I saw with my FIL's local in Lahaina Maui (sells itself). 

Thanks Dmitriy, we may change & start a self directed IRA on a large VR project next year vs portfolio lending. I enjoyed your site.

@Rosalynn Rice, VR's are a new & fast changing area. Suprisingly they've been around some time but tend to be heavily fragmented due to regions (urban, rural & tourist destinations), target audience / demographics,... Several factors play in to what you want to do with a short term rental such as business travel (NYC,SF), weekend get aways (La Quinta CA) to tourist destinations (Orlando FL).

I prefer beach areas b/c whether times are good or bad, people like to go to the beach! However the entry price is both high & volatile with many micro / macro influences involved. There is not alot of primary to tertiary literature on this subject matter.

Its a long discussion & not very much literature (primary to tertiary info) for the general public. The handful of advertising platforms are consolidating and thus chage is coming quickly.